Employees of the two corporations recently went on a go-slow action in demand of their salaries and other benefits owed them by the managements of the two corporations.
Disclosing this in a press release recently, the Corporation’s Management blamed the condition on the prevailing harsh economic condition at the Corporations and the failure to settle a whopping USD$10.7 million dollars owed them by the Liberian Government and NGOs.
The release said the problem has been compounded by the protracted delay in settlement of debts by most customers, which has caused serious embarrassment to management to settle salaries and other benefits to the employees.
In the release, the PMC and the AMC managements said while efforts have been exerted to ensure that workers abandon their strike action, the companies are appealing to the Government of Liberia, NGOs and their many customers to settle their obligations with the companies.
The situation has deteriorated to the point where the two corporations have to handle a deplorable economic downturn in addition to the problem with recalcitrant customers who seem bent on neglecting their financial obligations with the two companies.
In 2010 lawyers representing the two companies sued the Liberian Government at Commercial Court at the Temple of Justice, but lawyers representing the Government of Liberia argued that the commercial court has no legal backing to hear the case involving millions of United States dollars against the government.
The controversy came about in a US$10.7 million vehicle debt case levied against the Liberian government by lawyers representing Prestige and Alliance Motor Corporations, owned by Lebanese businessman, George Haddad.
State lawyers have argued that the court does not have the jurisdiction to hear the case, but the Commercial Court was established by legislation in 2010 as a specialized court to provide efficient and effective resolution in commercial cases throughout the country.
Government reportedly credited vehicles from 2003 to 2006, totaling over US$10.7 million, which the government has failed to settle.
Besides the cars, the lawyers also alleged that the company provided spare parts during the transactions with the government.